Bill Information
Key Votes on Array
Roll Call
About The Keyvote

This Democrat-only Congressional Review Act (CRA) resolution would undo updated borrower defense regulations that will be a marked improvement over the existing set of regulations that were issued under President Obama.

Borrower defense policy, which is intended to allow students who were defrauded by institutions of higher education to receive relief for their federal student loans, has existed for more than two decades but was rarely used until the Obama Administration. Whatever one’s opinion on the merits of loan forgiveness for alleged defrauding or even of federal student loans themselves, it can and should certainly be agreed upon that such a forgiveness program should be structured in such a way that it provides relief only to those who were truly defrauded, in the same way that the social safety net should apply only to the most vulnerable and in need amongst us.

The revised borrower defense regulations set to go into effect in July 2020 are the result of more than two years of deliberations and significant input from the public and from higher education stakeholders, following years of broad relief granted to groups under the existing regulations. As such, fortunately, the new regulations address many of the flaws of the existing structure of borrower defense. Chief among these is the narrowing of the definition of misrepresentation by requiring that the institution must have knowledge that the alleged misrepresentation is false.